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What initiatives are you undertaking to restore sales volumes of the Yakult series in Japan?
The Yakult 400 series will be relaunched in June as Food with Function Claims products—“Yakult 400 Immunity and Gut Health” and “Yakult 400 LT Immunity and Gut Health”—with added functionality for maintaining immune health. We also plan to extend immune-related functional claims to other products going forward. Leveraging these new product launches, we aim to revitalize our sales activities and drive a recovery in sales volumes.
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Will the new Chiba Plant, scheduled to begin operations in 2027, start as planned?
Based on factors such as the relocation due to the aging of the current Chiba Plant, improvements in logistics efficiency, and the initiation of a new container strategy, we currently expect the plant to commence operations as planned.
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What is your approach to reviewing the domestic production framework after the new Chiba Plant becomes operational?
First, we will establish the necessary production framework to achieve our mid-term management plan target of 11 million bottles per day. In addition, the start of operations at the new Chiba Plant is expected to improve production capacity, making it easier to take on new product development and manufacturing. Based on future sales volume trends, we will also consider restructuring our other production facilities as needed.
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What measures are you considering in Japan to address the rise in raw material prices caused by tensions in the Middle East?
We are considering measures such as reviewing our production framework to improve efficiency and reduce costs, as well as implementing price revisions at appropriate times, for example when adding new product functionalities.
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What is the current consumer environment and sales performance in Indonesia?
Inflationary pressures have begun to emerge due to the impact of the situation in the Middle East. While sales volumes are currently exceeding the previous year’s levels and there has been no immediate impact, we aim to achieve our targets by implementing product and channel strategies with a view to future developments.
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What is the current consumer environment and sales performance in Mexico?
In Mexico, the effects of the economic downturn following the Trump-era tariffs continue to persist. Sales volumes declined year on year in the first quarter (January–March); however, we will work to restore sales volumes by steadily expanding in-store distribution of flavored products.
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Please provide the revised schedule for the start of operations at the second U.S. plant, which has been delayed from the original plan.
Due to factors such as delays in building construction, postponed deliveries of equipment, and the prolonged timeline for obtaining regulatory approvals from local authorities, the start of operations has been pushed back from the original plan. At present, we expect the plant to commence operations in March 2027.
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What are the factors behind the expected year-on-year decline in operating profit margins in the Americas and the Asia & Oceania regions for the next fiscal year (ending March 2027)?
The main factors are rising raw material costs driven by the situation in the Middle East, as well as increases in selling, general and administrative expenses, including marketing expenses and personnel costs, which are expected to put downward pressure on operating profit.
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What assumptions were used in calculating the approximately ¥6.3 billion increase in raw material costs in Japan and overseas?
The estimate is based on interviews with suppliers as of March 2027, as well as projected sales volumes in Japan and overseas. For exchange rates, we use the average rate for the period from January to March 2026. As raw material prices fluctuate daily, we believe it is necessary to review these assumptions on a quarterly basis.
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What led to the establishment of the Corporate Value Enhancement Committee?
The Board of Directors had long recognized a sense of urgency regarding the current situation and had been holding discussions through various committees. In this context, we concluded that it was necessary to incorporate objective perspectives and expertise from external parties, which led to the decision to establish the Corporate Value Enhancement Committee with external advisors.
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What is your approach to the areas of discussion and reform direction to be considered by the Corporate Value Enhancement Committee?
In terms of financial and capital strategy, we will examine how to present clear numerical targets for returns on each investment. In business strategy, we will further develop concrete timelines for expanding business domains, as well as review the appropriate direction of our channel strategy. In non-financial strategy, we recognize that establishing a new governance framework will be a key priority.
